European Commission report urges major new investment in hospital systems and digital health to safeguard EU competitiveness

16 December 2025

A new policy report released today at EU level calls for substantial and sustained investment in European healthcare systems, with a strong focus on hospitals, integrated care networks and digital health infrastructure. The report, published against the backdrop of rising chronic disease burden and demographic ageing, argues that modern, resilient hospital systems are now central not only to safeguarding population health but also to maintaining the European Union’s economic competitiveness by supporting a healthy and productive workforce. For hospital executives, procurement leaders, and health-technology suppliers across Europe, the document provides a strategic roadmap that directly affects capital planning, technology investments and long-term service transformation.

The report identifies four key challenge areas where EU health systems, and in particular hospital-based services, require accelerated reform and fresh capital. First, it stresses the need to strengthen primary and community-based care in order to relieve pressure on acute hospitals, reduce avoidable emergency department visits and limit unnecessary admissions. However, it also recognises that such reforms must be tightly coordinated with hospital networks, ensuring that referral pathways, diagnostics, patient monitoring and specialist services remain accessible and properly funded. For hospital managers, this implies more formalised collaboration with primary care providers, clearer regional planning, and the adoption of shared digital platforms to exchange clinical and operational data in real time.

Second, the report underscores the importance of targeted investment in digital tools, electronic health records and data-driven hospital management to improve quality, safety and efficiency. All EU countries are now described as providing some level of access to electronic health records, but there is wide variation in the maturity of these systems and in their integration with hospital information systems, diagnostic platforms, patient monitoring solutions and telemedicine services. The report directly highlights the continued expansion of ePrescription services, artificial intelligence integration and national or regional digital governance frameworks. For hospital CIOs and IT departments, this translates into a clear policy signal that funding will continue to favour interoperable digital solutions, advanced analytics, AI-assisted diagnostics and clinical decision support, as well as cybersecurity and data-protection measures that comply with evolving EU regulations.

Third, the document stresses that workforce shortages, particularly in specialised hospital roles such as critical care, oncology, cardiology, diagnostics and imaging, remain a major constraint. It calls on member states to keep improving their systems to attract and retain primary care providers, but it also emphasises the need for strategic workforce planning across the continuum of care, including hospital-based nursing, anaesthesia, surgical teams and technical staff in laboratories and imaging departments. For healthcare management teams, this may trigger new incentive schemes, cross-border recruitment initiatives, upskilling programmes and investments in digital tools that reduce administrative burden and support more flexible working patterns. Vendors offering clinical decision support, workflow automation and digital training solutions are likely to find increased demand as hospitals seek both productivity gains and improved staff retention.

Fourth, the report spotlights the ongoing importance of EU funding instruments such as Cohesion Funds and the Recovery and Resilience Facility in financing hospital modernisation projects and digital transformation. These mechanisms are already supporting critical reforms ranging from infrastructure upgrades and new diagnostic and imaging capacity to the roll-out of telemedicine and remote patient monitoring platforms. The report suggests that future funding cycles will place even greater emphasis on projects that strengthen resilience to shocks, including pandemics and antimicrobial resistance, and that enhance cross-border collaboration through aligned data standards and interoperable systems. For procurement officers and financial directors, this means that early alignment with national recovery plans and EU investment priorities will be crucial for securing co-financing of capital-intensive projects such as new radiology suites, intensive care expansions, and digital hospital command centres.

Of particular relevance to infection control and laboratory services, the report sits alongside broader EU efforts to strengthen surveillance, diagnostics and response capacity for communicable diseases and antimicrobial resistance, areas that depend heavily on hospital microbiology laboratories and stewardship programmes. While the main narrative focuses on macro-level investment, the implications for hospital operations are concrete: laboratories will need upgraded equipment, connectivity to national surveillance networks, and advanced informatics to support real-time reporting and decision-making. Infection control teams will be expected to work more closely with management to translate these investments into measurable reductions in hospital-acquired infections and more rational antibiotic use, leveraging both new diagnostics and enhanced clinical decision tools.

The report also addresses the strategic role of technology in improving continuity of care between acute hospitals, rehabilitation and mobility services, and long-term care facilities. It notes that wider adoption of digital care pathways, remote monitoring technologies and telemedicine can reduce readmissions, shorten length of stay and enable more patient-centred rehabilitation. For orthopaedics, cardiology, respiratory care and oncology, this could mean more routine incorporation of home-based follow-up supported by connected devices and virtual consultations. Hospital-based teams will therefore need to coordinate closely with community providers and rehabilitation centres, standardise protocols and ensure that data from remote monitoring flows back into hospital information systems in a usable format.

From a governance perspective, the report calls for continued development of robust digital governance models, including clear responsibilities for data quality, security and ethical use of AI. Hospital boards and senior leadership will be expected to treat digital health not just as an IT issue but as a core strategic asset. This includes integrating digital transformation objectives into corporate strategies, setting measurable targets for adoption and impact, and ensuring appropriate clinical engagement in design and implementation. Vendors in healthcare information technology, diagnostics and imaging, patient monitoring and telemedicine will likely see procurement processes become more demanding in terms of interoperability, outcomes evidence and lifecycle support, as hospitals align purchases with EU-level expectations for value and sustainability.

Finally, the report positions investment in health systems as a foundation for broader prosperity, arguing that healthier populations reduce productivity losses and ease pressure on social protection systems. For decision-makers in hospital management, this framing offers an additional lever for advocating capital and operational budgets: hospital and health-system investment is no longer presented solely as a cost, but as a strategic driver of growth and competitiveness. Over the coming years, the findings are expected to influence national health strategies, reshape priority-setting for hospital infrastructure and technology projects, and guide the design of new EU programmes that support digital innovation, workforce development and resilient, high-performing hospital networks across Europe.